“Custodian” is defined in § 101(10) of the Code. The definition includes a trustee or receiver appointed in proceedings not under the Code, as well as an assignee for the benefit of creditors.
This rule prescribes the procedure to be followed by a custodian who under § 543 of the Code is required to deliver property to the trustee and to account for its disposition. The examination under subdivision (b) may be initiated (1) on the motion of the custodian required to account under subdivision (a) for an approval of his account and discharge thereon, (2) on the motion of, or the filing of an objection to the custodian’s account by, the trustee or any other party in interest, or (3) on the court’s own initiative. Rule
applies to any contested matter arising under this rule.
(d) is similar to an abstention provision. It grants the bankruptcy court discretion to permit the custodian to remain in possession and control of the property. In that event, the custodian is excused from complying with § 543(a)–(c) and thus would not be required to turn over the property to the trustee. When there is no duty to turn over to the trustee, Rule
would not be applicable.
This rule is amended to enable the United States trustee to review, object to, or to otherwise be heard regarding the custodian’s report and accounting. See §§ 307 and 543 of the Code.
Subdivision (b) is amended to conform to the language of § 102(1) of the Code.